SSE/EFI Working Paper Series in Economics and Finance
International Health Expenditure and GDP: New Multivariate Cointegration Panel Data Results
() and Mickael Löthgren
Abstract: In this paper we test for existence of cointegration
between health expenditure and GDP using data from 19 OECD countries for
the period 1960-1995. Country-by-country and panel results based on the
Johansen multivariate likelihood-based inference and a new panel test for
cointegration rank are presented. The empirical modelling is based on a
bivariate vector error correction model that allows for trending data as
well as an intercept and a trend in the cointegrating relation. Given this
model, the main result indicates that a cointegrating relation exists
between health expenditure and GDP.
Keywords: Cointegration; Heterogeneous dynamic panels; Maximum likelihood; (follow links to similar papers)
JEL-Codes: C12; C22; C23; I10; (follow links to similar papers)
13 pages, September 21, 1998
- Publication Data:
- Published in Applied Economics, 2002, pages 1679-1686.
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